Joplin, MO Rental Shortage

4 Replies

OK--So I am new, and hope I do not come across as stupid for asking this. The greater Joplin area has a shortage of rental homes--specifically for the 4+ bedroom range. So, I started looking around to see if there were any that the math seemed to work out.

I did find a home that needs $30K worth of repairs, ARV $100K and would rent for $1050/month. Plus, the all in would leave quite a bit of equity, if I calculated the comps correctly. (All in investment for Landlord would be: $69K) (Again, newbie--so I am learning.)

What am I missing? Is this a good deal?

What are you looking for cash flow, appreciation, equity?  How would you pay or finance the property?  If you are at a 69% Ltv it doesn't leave much for being able to leverage against.  If you are just starting and are putting 20% down then it will a lot you a fair amount of equity to leverage into another property.  I'm not familiar with the area but 30k rehab seems high unless you are doing some of the major mechanicals.  I would say depending on how you are financing this would determine if the deal is solid as a rental.  If you are looking to flip it I would say go for it as you should profit somewhere around 15-25k pending your market.

I was looking to wholesale it to someone who would want to rent it--or even someone who wants to flip it--and I put the rehab higher because there are 2 bathrooms that need gutted plus the kitchen.

@Ashley Wise the biggest issue with the 4br inventory is the rent ceiling in Joplin. Based on median incomes in Joplin, it's much more difficult to find renters in the price range you mentioned. I think the 4br rental shortage is supply driven, since it's not as wise of an investment for landlords based on both returns and vacancies. Lower price points rent much quicker, making shortages in those price points demand-driven. Feel free to connect on the socials in my profile. 

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